From Deseret News archives:
Food tax boiling on front burner as legislative session starts
Fight may pit Senate GOP, House GOP, Huntsman
The governor is believed to be on the verge of announcing his own plan for taking the sales tax off food: increasing the state and local sales tax on other items to offset the estimated $226 million that would be lost by state and local governments.
But the GOP Senate is now talking about a $100 million tax cut in next year's budget in the form of a $75-per-person refundable personal income tax credit for sales tax paid on unprepared food for families earning less than about $40,000.
When the Senate majority caucus votes on the proposal, likely Thursday, it will be the first time that Senate Republicans have locked on to a tax cut number. Last month, House Republicans voted in caucus to give a $230 million tax cut in fiscal 2006-07.
Huntsman, also a Republican, proposed a $60 million tax cut in his budget that included $37 million toward taking the sales tax off food but no explanation of exactly how he'd like to see that accomplished.
That may well change in his State of the State address tonight.
Asked about the tax credit being discussed by the Senate, Mower said the governor's goal is to simplify taxes. Providing any type of credit on state income tax forms, he said, would "make them more complicated."
This morning, the House Republicans' food tax bill HB109, which removes the state and local sales from food completely goes before a legislative committee where it is expected to pass.
Still, Senate President John Valentine, R-Orem, said a tax credit is the most "elegant solution" to dealing with the hated tax on food, allowing lawmakers to, in effect, eliminate the tax for low-income Utahns without having to find a way to make up the loss.
The Senate's food tax stand reflects the wishes of a variety of Utah businesses which don't want to pay a higher sales tax rate on nonfood items, an estimated 1.1 percent increase, Valentine said.
It also eases concerns raised by Democrats and others that some government programs, especially those aimed at helping the poor, could go on the chopping block to cover the cost of the tax cut.
Comments
- Try this chicken two-fer 6:54 p.m.
- Cats are trainable — no joke 6:47 p.m.
- Oscar gets 20 animated submissions 6:38 p.m.
- Semifinal slate sealed on 'Dancing' 6:30 p.m.
- Records: MJ's funeral cost about $1M 6:28 p.m.
- Yardsmart: Flowers honor veterans 6:26 p.m.
- Lining up for 'Modern Warfare 2' 6:22 p.m.
- Ronnie Wood divorced over adultery 6:21 p.m.
- Warhol's MJ portrait sells for $812K 6:17 p.m.
- MacIntyre wins literature award 6:16 p.m.
- SLC council OKs gay rights policies
- Utah Jazz have a problem at point
- 'Love story' of crash victim ends
- BYU football recruit turning heads
- Alta's Ohai is Ms. Soccer 2009
- Prep football: Felt's Facts Week
- 12 Utes return to Texas
- Cougars' defensive hoops clinic
- Wyoming writer amazed by BYU
- Gays get Mormon support in SLC
- House passes health care bill
275 - SLC council OKs gay rights policies
235 - TCU showdown has big implications
192 - Senators want food tax restored
157 - Cougars crush hapless Cowboys
155 - Utah Jazz fall apart against Kings
131 - TCU 4th in AP poll; U. 16th, Y. 22nd
119 - S.L. vote pending on gay protections
109 - No 'backlash' for pioneers, gays analogy
108 - Pratt pleads not guilty to sex charges
100
Maybe someone out there can help me understand how raising the state...
Sen. Scott Jenkins was name-checked by Jay Leno Monday night during his...
C'mon we worked hard for the championship in 1983. It has been the only one...
Well, I first wanted to write - WHO CARES??? But, I realized that is unkind...
thank you, a fine article and great for our own introspect.
Its no secret people..... Why is it Alta, Bingham and Davis in the Final...
Since Joseph Smith never had anything to do with polygamy, it is no wonder...
"As an ex member of the church and CURRENT homosexual, i believe that...
I am so thrilled to hear that the money was raised and the kids get to have a...
Lets remember who said the America was stupid, and that we should just have...
Remember last year? 13-10 babbbbbyyyyyy!! Can't deny the fact that the Utes...
Your tears have been delicious. Here's to another year of bathing in your...




You can be the first to comment on this story.